KSHB 41 reporter Ryan Gamboa covers Miami County in Kansas and Cass County in Missouri. He also covers agricultural topics. Share your story idea with Ryan.
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Hertzog's Beef Processing is processing upwards of 30 full beef carcasses daily.
"Beef supply is tight, and the demand for beef continues to grow," said Mike Quick, a partner in a fourth-generation Bates County, Missouri cattle operation.
Hetzog's Beef Processing is a locally owned and operated USDA inspected facility.
It's different than your average store, selling and processing its own Black Angus beef products.
"Our retail sales have been through the roof," he said. "Your typical butcher is going to sell to a supermarket, you might see a 20, 30, or 40% markup at that supermarket on beef."
That markup ties in labor, packaging, and processing costs in an already tight market for beef products.
According to the Bureau of Labor Statistics, a pound of ground beef reached a near record high, 50% higher than five years ago.
"There’s just a shortage," Quick explained.
It's basic supply and demand, stemming from multiple years of drought.
Livestock producers across the United States were forced to sell some of their herds to keep up with high input costs.
"All the hay, if we’re in a drought, that drives the cost up," Quick said. "If it’s a bad year for corn, it can drive costs up. It can add up in a hurry."
According to the United States Department of Agriculture, tough decisions to cut back cowherds across the nation, put the total U.S. cattle population at a 70-year low.
A major driver in today's supermarket beef prices.
"For the last four years in a row, beef prices have gone up almost every single week, except for five weeks in the last four years," stated Quick.
Live cattle prices on the livestock producer side have also reached all-time highs, Quick said.
Record market prices now aren't necessarily creating optimism in herd growth.
It's another risk some may not be willing to take in the long term as the demand for red meat remains high.
"Guys like us are continuing to do what we can to grow our herds, but it comes at a cost," Quick said. "At some point, we’re bumping up the highest cost we’ve ever seen and if the market were to flip, then we’re upside down. Nobody’s winning right now, unfortunately."
The farmer optimism comes in ebbs and flows, for both Mike Quick and Kansas Cattleman, Pete Goetzmann.
"The American public is still interested in eating beef. Which is good... When you go to the grocery store, it’s kind of eye opening what a pound of ground beef costs today." Pete Goetzmann, another cattle rancher, said. "To grow your herd at these price levels is risky. Will the price stay there after I get my herd grown to a level I want? That is the risk at hand."
Hertzog's Beef Processing and Meat Company is able to make it work selling directly to the consumer.
Processing its own animals and selling directly to consumer helps keep cost down by eliminating labor and freight costs.
Quick says buying directly from the farmer saves his customers 20-30% percent more than what they'd pay at other grocery stores.
A solution to the dropping number of cattle across the nation, Quick says, would be to get a younger generation of farmers involved.
"The industry right now, you don’t see a lot of younger farmers getting into the business," he said. "Because it’s quite expensive and you need a lot of money to get up and running. On top of that you gotta start from nothing, so you have a few years until you actually make some money. We still just need more younger farmers to get into the mix here to help us with those calf numbers."
As for long-term beef prices, Quick suspects there isn't much relief on the horizon.
"I hate to say it, I don’t see the beef relief like we usually see after the grilling season is over," he added.
